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Author Topic: how to start business from smallholding?  (Read 6007 times)

tattycat

  • Joined Nov 2013
how to start business from smallholding?
« on: May 18, 2014, 06:49:36 pm »
Ok got the holding, nd the animals, nd the experience. ..do I need to register for vat? What's the score on 'running a business' from your home address, jam's, cordials nd chutneys from own produce, own kitchen. Selling poultry, goats, pigs....so many questions.  Are people's courses full? Is there a demand for them? Would it be good to work with schools?...
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plumseverywhere

  • Joined Apr 2013
  • Worcestershire
    • Its Baaath Time
    • Facebook
Re: how to start business from smallholding?
« Reply #1 on: May 18, 2014, 08:16:00 pm »
I run Its Baaath Time (goats milk soap) from home.  We set up 4 years ago in June and in order to do so I had to obtain insurance and cosmetic assessments - of course this is only relevant to my specific trade.
I also had to register for VAT and inform Trading standards that I had opened up.

For making and selling consumables you need a hygiene cert I believe - trading standards (your local office) will be best to advise you. They will also tell you what you need to do with labelling etc

I think it was when I registered for VAT that I was sent out a huge start up pack which was really helpful.

I work with small groups of children at times and need a CRB certificate for that obviously
Smallholding in Worcestershire, making goats milk soap for www.itsbaaathtime.com and mum to 4 girls,  goats, sheep, chickens, dog, cat and garden snails...

Lesley Silvester

  • Joined Sep 2011
  • Telford
Re: how to start business from smallholding?
« Reply #2 on: May 18, 2014, 11:54:25 pm »
You only need to register for VAT if your turnover is above a certain amount - not sure what but quite high - although you can do so under that amount. If you were buying in supplies that you paid a lot of VAT on and wanted to claim it back, it would probably be worth doing but, as you will be selling preserves and chutneys, which you can't charge VAT on and the supplies you will be buying will be partially VAT free, it may not be worth doing.


You do need to notify HM Revenue and Customs for income tax and National Insurance. If your expected income is below a threshold you can apply for exemption from NI. When I had my own small business (tutoring) I was also working for an employer and paying my NI contributions through them so I went for exemption.


Also, as Plums has said, a hygiene certificate and anything else trading standards want. I suspect you will need your kitchen inspected.

john and helen

  • Joined Mar 2013
  • Devon
  • WARNING,,,MAY SAY WHAT HE BELIEVES
    • Facebook
Re: how to start business from smallholding?
« Reply #3 on: May 19, 2014, 08:00:15 am »
Hi Tattycat,
we are doing the same…although i do have a flooring business already
you will hear many say, you will not make money from a smallholding.
personally i think its a great business opportunity, depending on how much you put in and what you can put up with,
selling at the gate will not see you making much money, you will need to market your produce..get your name out there ,as they say,

VAT is around 76k ..but don't forget, you can claim all your VAT back for anything connected to the business,
i.e. stock fencing, a percentage of fuel, tools etc etc …really look into this, as its also a pain in the arse.. ;D

good luck with the new business

plumseverywhere

  • Joined Apr 2013
  • Worcestershire
    • Its Baaath Time
    • Facebook
Re: how to start business from smallholding?
« Reply #4 on: May 19, 2014, 08:12:44 am »
I meant Income tax not VAT - oops, and I think it was HMRC that sent me all the info I needed (too much beer and sun when i posted yesterday!) 
Smallholding in Worcestershire, making goats milk soap for www.itsbaaathtime.com and mum to 4 girls,  goats, sheep, chickens, dog, cat and garden snails...

ellied

  • Joined Sep 2010
  • Fife
    • Facebook
Re: how to start business from smallholding?
« Reply #5 on: May 19, 2014, 08:21:59 am »
Preserves, baking and other kitchen based activities - hygiene may require a new kitchen in an outbuilding if you have pets or use your farm kitchen for incubators, warming lambs, muddy boots etc, so don't assume what you use for your family will do even if you get the theoretical based food hygiene certificate that says you know what you're doing, if your premises can't comply, you can't sell.  Two different inspections, your knowledge/practice and the premises/equipment.  Plus all the legal requirements on food labelling, from ingredients to allergens in your working environment (even if not specific ingredients) eg if you store or use nuts you have to notify on all products not just those with nuts in.

Egg and produce sales - you can sell at farm gate but not to businesses/third party sellers unless you grade and label, which increases your costs beyond the feed/maintenance.

As soon as you are trading however small, you need to register with HMRC as self employed and fill in an annual tax return so keep every receipt and cash purchase/sales.  If you earn less than the threshold you won't pay income tax and it could reduce other liabilities if you have a day job or a partner with other income, so not a bad thing just a bureaucratic hoop.

You also need to inform all insurers relating to your property/contents and check your vehicle cover if you will be using it for any related travel.  The instant you have someone buying at your doorstep you have slip/trip risk and need third party cover.  If you run courses or other services, you need professional indemnity related to that profession.  Any domestic cover will be invalidated unless buildings/contents insurers know you have that additional risk of other people coming and going, and some will not provide that cover so you're wasting money paying for it, others will not add to the premium but may raise questions and/or the amount you pay of any claim made, and most professions have relevant policies that already note the likely risks and specifically cover them for you.

VAT is optional registration until you reach a hefty turnover but some, particularly farm businesses, register voluntarily and get rebates on large machinery/vehicle purchases etc.  Sounds good except you then have to add VAT to your sales prices and if your competitors/industry norm is non-VAT sales eg equines which are mainly a leisure market, then you may suffer the fact that potential customers would rather not pay the extra 20% you have to charge.  Ditto selling on equipment/vehicles.

HMRC, and local Business Gateway or other organisations set up to help the self employed comply and compete, provide free training and advice on all the above.  Best register self employed first and sign up for their courses before you make any expensive decisions, particularly if one of your activities might rule out others or make them more expensive and complex to comply over.
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in the hills

  • Joined Feb 2012
Re: how to start business from smallholding?
« Reply #6 on: May 19, 2014, 09:53:09 am »
Can't be of much help as I'm just setting up a little art/ craft business but I registered on- line last night. Quite simple to register that way.

Porterlauren

  • Joined Apr 2014
Re: how to start business from smallholding?
« Reply #7 on: May 19, 2014, 11:25:19 am »
One thing . . . . . . it's becoming a very over populated market in some areas. So check out your competition first!

A lot of folk are trying to make money out of their small holdings, but only a very few are canny enough to make it really work.

Do your research, look at your skills and abilities, and your assets. Be brutally honest with yourself, even self critical.

It's better to start smaller, or slower, than jump in, and set yourself up for looking like a prat!

I.e - Running courses, teaching etc is all very well, but you really need to know your s**t, and have a lot of experience in order to justify charging people to learn from you. I.e If I went on a pig keeping course and found out that the people teaching it had kept pigs for two years, and maybe farrowed one or two litters. . . . . I wouldn't be too impressed!

Selling meat boxes is great when you have a little family and friends network, that snap up your pork when you have two spare pigs going to slaughter. . . . but that doesn't mean if you were sending ten pigs you would make five times the profit . . . . you may well get left with a lot of pork!

tattycat

  • Joined Nov 2013
Re: how to start business from smallholding?
« Reply #8 on: May 20, 2014, 08:46:48 pm »
Thanks folks. Given me somethings to think about. Think getting registered is the first step. Also I'm in Rep of Eire, so regs all a bit different, not enough to not get the gist of things though. Think there's also a possibility to 'rent' kitchen space....thanks again :thumbsup:
Dun Roaming Smallholding and Open Farm. Ireland on Facebook

Smallholding Weekends  in rural Ireland.
Also some 'Showing Goat's ' weekends.

 

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